LSI sells Axxia business to Intel for $650m

Networking is still big business

Intel paid a whopping $650 million (about £400 million, AU$700 million) to get its hands on LSI's Axxia Networking Business, a transaction that was done in cash.

Shares of the Santa-Clara based company have risen by more than three per cent since then, bringing the stock close to its 52-week high - its highest point for more than a decade.

LSI was purchased last year by Avago Technologies for $6.6 billion (about £4 billion, AU$ 7 billion) and the company made no secret that it wanted to sell LSI's networking business which employs more than 650 people.

Big sales

The deal, which is still due to go through due diligence from public bodies, is expected to bring north of $110 million (£65 million, AU$ 120 million) of annual revenues every year.

Axxia's IP is likely to allow Intel to propose more rounded offerings from mobile to data centres - and everything in between with wireless access underpinning the lot.

Axxia makes enterprise communication processors, custom silicon and mobile communication processors, all of which use non-Intel architectures, Power and ARM..